Ship and Yacht Registration in Malta Malta has, time and again, proved to be one of the most popular jurisdictions when it comes to the registration of ships and yachts. The reason behind this fact is an array of tax exemptions and other advantages which are carefully selected to harness the strategic importance which Malta holds in the middle of the Mediterranean Sea. Such advantages include: - low company formation and ship registration costs; - no restrictions as to the nationality of the owner, master, officers and crew; - no restrictions on the sale and mortgaging of Maltese vessels; - no restrictions on the transfer of shares of a company owning such Maltese vessels; - a number of fiscal incentives; - 24x7 service in cases of urgency. The fiscal incentives include: - tax exemption to owners, charterers, and financiers of Maltese ships over 1,000 net tons (smaller ships can also benefit from this exemption under certain circumstances) on income derived from shipping activities of a licensed shipping organisation; - inapplicability of exchange control regulations to transactions connected with the ownership, operation, administration, management, purchase or financing of an exempt ship; - no income tax is payable on gain arising on the liquidation, redemption, cancellation, and disposal of shares, interest or goodwill held in a licensed shipping organization; - no income tax is payable on interest or other income payable to persons in relation to financing of shipping operations or the financing of ships; - persons not resident in Malta who are officers/ employees of licensed Maltese shipping organizations are entitled to be exempt from the provisions of the Social Security Act - exemption from duty in respect of: - the registration of an exempt ship; - the issue, allotment, purchase or transfer of any security or interest in a shipping organization; - the sale of the ship; - the registration or transfer of any mortgage or charge over any ship or shipping organization; and - the assignment of rights and interests or the assumption of obligations in respect of any ship. Eligibility for Registration • All vessels including pleasure yachts, oil tankers and oil rigs can be registered under the Maltese flag; NB. Vessels constructed more than 25 years ago need an express permission for registration, while vessels of 15 years and over must pass an inspection test before such registration; • Vessels must be wholly owned by Maltese citizens or a company registered in Malta (licensed shipping organization) or, in default, provided that a Maltese registered agent is appointed; • The formation and registration of a company in Malta involves the submission of the constitutive documents of the company to the Maltese Registrar of Companies. Subject to a minimum requirement of 2 shareholders and 1 director, there are no number, nationality or residence restrictions on shareholders/directors of the Maltese company owning the vessel. The minimum share capital is Lm500 (Euro 1200) of which at least 20% has to be paid up upon registration. Registration Procedure While being regulated by the Merchant Shipping Act, a law which is largely based on its UK counterpart, ship and yacht registration in Malta forms part of a simple streamlined procedure divided into 2 main phases: (i) the provisional registration (valid for 6 months extendible to 1 year), and (ii) the permanent registration. Pending the finalization of the formalities required for permanent registration, a provisional registration certificate may be issued in respect of any vessel, which certificate will remain valid for 6 months (extendible to 1 year). The documents required for the Provisional Registration to be made are the following: 1. A copy of the statute of the Company which would have been incorporated in Malta for the purpose; 2. A duly completed application for registration; 3. An application for a change of name, if required; 4. A copy of the ships International Tonnage Certificate; 5. Evidence of seaworthiness of the ship, and in case of trading vessels, confirmation of class; 6. The completion of application form to obtain a minimum safe manning certificate; 7. A declaration of ownership made by the ship owner or by an authorised representative; 8. Class payment of initial and annual registration fees. The documents required for the Permanent Registration to be made are the following: 1. A builder’s certificate in case of first registration, or a deletion certificate from the last port registry; 2. A bill of sale or any other document by which the vessel was transferred to the applicant for registration free from any encumbrance; 3. An endorsed copy of the Ship's Carving and Marking note by a recognised surveyor or a Maltese Consul, which note is issued by the Malta Maritime Authority upon provisional registration; 4. A certificate of survey and a copy of the tonnage certificate certifying that the vessel has been surveyed in accordance with Maltese regulations; 5. A crew list; 6. Copies of officer’s certificates; 7. Application for Wireless Telegraphy Apparatus, if required. 
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